While freelancing comes with a lot of freedoms and joys that just can’t be found in traditional employment, it also comes with a whole slew of additional responsibilities. This is particularly true when it comes to taxes. Form W-9…Schedule C… Form 1040-ES…what does even all of that mean? To the untrained, it all just sounds like a foreign language.
As terrible and confusing as it all sounds though, it is critical to learn it all because the last thing you want to do is be on the wrong end of Uncle Sam’s temper. But instead of going back to school to get an accounting degree for tens of thousands of dollars, there’s great companies such as Quickbooks by Intuit that can help make life easier for the newly self-employed. So in order to make sense out of all these forms and schedule number combination things, check out this article written by April Maguire (she has tons of great content on everything freelancing and self-employment). It break down every tax form that is important to a freelancer in simple terms. Moreover, it even provides best practices on tracking income and expenses to make your life easier when it’s finally time to fill out all the necessary documentation.
And while this isn’t mentioned in this particular article, we here at IWantToFreelance highly recommend for you to get a tax adviser when you’re starting off. Yes, it is an extra expense to incur but this is definitely something you don’t want to mess up on. As a result, make the initial investment at the beginning and then you’ll be set for years to come.